Minister Updates On Merging BLDC & WEDCO
Speaking in the House of Assembly today [March 11], Minister of Public Works Lt/Col David Burch provided an update on the planned merger between the Bermuda Land Development Company [BLDC] and the West End Development Corporation [WEDCO], explaining that “there has been a delay regarding the legislative amendments needed to complete the project.”
The Minister said, “Let me start off by saying nothing in Government moves fast. Almost 2 years ago in July 2022, I announced the intention to amalgamate the BLDC and WEDCO. From a business perspective, this makes complete sense since these two quangos share similar objectives, mandates, skills, accounting procedures, and staffing levels.
‘A lot of work has been done already and both entities are ready to merge.
“Kudos must be given to the team of technical officers who worked diligently – ably led by Mr. Andrew Dias in his dual role as General Manager of WEDCO and CEO of BLDC, as well as the respective Boards of each entity. At the BLDC AGM last year – steps were taken to align the Boards. The remaining administrative staff at BLDC is moving their offices to converted space in the Maintenance building and Triton House, their headquarters will be rented out to the private sector.
“This now brings me to the key update as of today. While it was the full intention for this initiative to be completed by January 2024 – and I must clarify that operationally, this target has been met. The company is fully ready to complete this transition.
“However, there has been a delay regarding the legislative amendments needed to complete the project.
“Resource challenges within the Attorney-General’s Chambers, Mr. Speaker – namely staffing – the bill to complete the merger has not been finalized. As such, the transition teams are currently in a holding pattern until this portion is completed.
“The merger team stands ready to complete the consolidation once the necessary legislative requirements are concluded. The final process after legislative approval is estimated to take an additional six [6] months based on specific steps laid out for closing a company in accordance with the Companies Act 1981.”
The Minister’s full statement follows below:
Mr. Speaker, I rise today to give an update on the ongoing merger between the Bermuda Land Development Company [“BLDC”] and the West End Development Corporation [“WEDCO”].
Mr. Speaker, let me start off by saying nothing in Government moves fast. Almost 2 years ago in July 2022, I announced the intention to amalgamate the BLDC and WEDCO. From a business perspective, this makes complete sense since these two quangos share similar objectives, mandates, skills, accounting procedures, and staffing levels.
From the time of that announcement the following operational activities have taken place to prepare for this transition:
- Creation and implementation of new identical Union Collective Bargaining Agreements for both WEDCO and BLDC
- Job description reviews and internal policy assessments have been completed.
- Merged WEDCO and BLDC servers and software – essentially running all finance and IT systems for both entities from a single location.
- The Chief Financial Officer at WEDCO is now acting in a dual role for both entities.
- Compiled the asset and liability schedule for both entities.
- Established a Marketing and PR joint strategy for the new entity.
- Relocated key staff to assist with the transition initiative; and
- Liquidators have been appointed.
Not only has all this taken place Mr. Speaker, but you may also recall in March 2023 this Honourable House approved the dissolution of the BLDC to ensure the seamless amalgamation of the entities.
As I have said before Mr. Speaker, a lot of work has been done already and both entities are ready to merge.
Kudos must be given to the team of technical officers who worked diligently – ably led by Mr. Andrew Dias in his dual role as General Manager of WEDCO and CEO of BLDC, as well as the respective Boards of each entity. At the BLDC AGM last year – steps were taken to align the Boards. The remaining administrative staff at BLDC is moving their offices to converted space in the Maintenance building and Triton House, their headquarters will be rented out to the private sector.
Mr. Speaker, before I move on let me remind colleagues why the Government is undertaking this initiative.
Originating on 16th July 2002, the then Cabinet decided that the Central Policy Unit should complete a review of 17 Quango’s which focused on a wide range of topics covering the establishment and governance of each body; its existing relevance, feasibility, effectiveness, levels of accountability to Government, expenditure, income, whether the work could be more effectively [or more efficiently] carried out within Government proper; or by some other means; Determine governance and best practice in other jurisdictions and to develop mechanisms for ongoing review.
This review culminated in a report entitled “Untangling Bermuda’s Quangos – A review of Quangos in the Bermuda Government” presented in October 2003 as well as subsequently mentioned in the Sage Commission Report presented a decade later in 2013.
Mr. Speaker, this Government took the decision early in our administration shortly after returning to government in July 2017 to have another look at the reports and their recommendations with a view to actioning some of those items – one of which is this amalgamation.
Simply put, the Ministry views the merger as an opportunity to immediately effect some cost savings by reducing duplication of roles, combining responsibilities, and bringing a sharper focus to deliver on the government’s mandate to control costs and operate more efficiently.
Mr. Speaker, this now brings me to the key update as of today. While it was the full intention for this initiative to be completed by January 2024 – and I must clarify that operationally, this target has been met. The company is fully ready to complete this transition.
However, there has been a delay regarding the legislative amendments needed to complete the project.
Resource challenges within the Attorney-General’s Chambers, Mr. Speaker – namely staffing – the bill to complete the merger has not been finalized. As such, the transition teams are currently in a holding pattern until this portion is completed.
I repeat what I said in July 2022, “We have got to find a better and quicker way to make progress going forward”.
The merger team stands ready to complete the consolidation once the necessary legislative requirements are concluded. The final process after legislative approval is estimated to take an additional six [6] months based on specific steps laid out for closing a company in accordance with the Companies Act 1981.
Mr. Speaker, I must again commend the management and staff of both organizations – many of whom did not believe we would proceed and that their jobs would be in jeopardy if we did. I am particularly pleased to commend both the Bermuda Industrial Union and the Bermuda Public Services Union for collaborating with us to revise the Collective Bargaining Agreements so that they are identical, and the amalgamated entity can flourish.
Mr. Speaker, this has been a long and arduous journey that both you and I – and perhaps a few others in this House have lived through. I am certain though that if other Government entities wish to pursue a similar course of action – the process employed in this exercise would be an excellent template to follow.
Mr. Speaker, you and the Honourable colleagues will be aware that we have reached the end of this journey when the Bill is tabled in this House.
Thank you, Mr. Speaker!
“Let me start off by saying nothing in Government moves fast.”
Had you stopped there, Col., you would have received unanimous (or near unanimous) agreement from all in Bermuda.
Really.
And the purpose of this merger would be what.
Get real you bunch of thieves.
The purpose is to get things done. Just like every voter knows the oba/UBP is using Jarion Richardson as leader instead of Scott Pearman or Michael Dunkely. Actually rewind everyone knows he’s being used for his skin color to help ((((fake)))) the party in looking diverse.
The UBP is still dissolved and I do not remember Jarion Richardson being in politics prior to 2011.
Do you just make stuff up as you go along?
The Oba is the UBP and if you believe something different I hope you find a professional therapist to talk too because that clown party is never winning any elections.
The UBP was dissolved in June 2011. It is a shame you are unable to do the most basic of research before you come here insulting Bermudians.
It is also worth noting that 2 former leaders of the UBP, Kim Swan and Wayne Furbert, are now PLP MPs. I am not aware of any former leaders of the UBP currently sitting as OBA MPs.
It’s also worth noting that the majority of black members and voters left the UBPOBA for the same facts that everyone knows in Bermuda is true accept you. Now its 30-6 good luck explaining that.
“accept you”
LMFAO. We know why the majority of the electorate vote for incompetence.
“everyone knows in Bermuda is true accept you”
Had you grown up in Bermuda and attended Whitney Institute you would recognise at least 2 grammatical errors and one spelling error in that statement.
The obaubpeee consultants advised them to place more surrogates at the front. Now that the secrets out everyone can be happy.
The plp IS the OBA….just look at them.
No need to be so dishonest.
So we’re supposed to believe they’re ‘putting their lives on the line’ in order to ‘get things done’?
Haha, hilarious.
Only a racist like you would say that.
Keep it going, it’s all you have.
You’re an attention seeking chronic victim…..LMFAO.
Yeah , that party is just sooo not diverse.
When we want to see what diversity is we look to the plp .. LOL
When you tell them that Richardson being used for the color of his skin they act like it’s not true and they wonder why it’s 30-6 what fools they are. He’s another surrogate victim who will learn just like the rest that came before him.
Only a racist would say that.
You’re a hypocrite, seeking attention.
Grow up.
You’re just another racist who uses surrogates for votes which you’ll never get. Now whitewash that.
Nothing will change. Thee will be no efficiencies of any kind . When companies merge there are various assessments done and we know from past experience this will not happen.This government will not layoff any one even of they are not necessary for the new dept for example. There is nothing gained by merging the departments its all propaganda.
I seem to recall such a merger being mentioned about 20 years ago and the PLP Government explaining why such a consolidation would not work. What has changed?